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Title: Transaction cost-based motives for multisourcing in information technology

Authors: Barbara Łoboda

Addresses: Collegium of Management and Finance, Warsaw School of Economics, Al. Niepodległości 162, 02-554 Warszawa, Poland

Abstract: From its beginning in 1990s, multisourcing has given information technology companies an opportunity to gain a competitive advantage in a turbulent environment. The article aims to understand the motives for multisourcing from a transaction cost economics perspective, and tries to resolve the paradox between choosing a form of cooperation that lowers transaction costs (TC), and deciding for multisourcing, which, based on articles and described cases, increases TC by as many parties involved as there are. Multisourcing is a relatively new phenomenon, and few studies have embarked on a topic of why it is undertaken by firms, therefore case study is a relevant research method. The article suggests that multisourcing is not chosen by firms to lower TC, but companies need to act to reduce the costs.

Keywords: multisourcing; transaction cost economies; TCE; motivation; information technology; IT sourcing; cost reduction.

DOI: 10.1504/IJSBA.2016.078229

International Journal of Strategic Business Alliances, 2016 Vol.5 No.1, pp.69 - 79

Available online: 05 Aug 2016 *

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